STOCK-BASED COMPENSATION PLANS (Tables)

12 Months Ended

Dec. 31, 2014

Schedule of Assumptions used to Estimate Fair Value of Share Options

We estimated the fair value of each option on the grant date using a Black-Scholes option-pricing model with the following weighted average assumptions:

	Year ended  December 31, 2014			Year ended  December 31, 2013
Dividend yield (1)		0.0	%		0.0	%
Expected volatility (2)		118.5% - 122.24	%		99.2% - 110.2	%
Risk-free interest rates (3)		1.19-1.72	%		1.02	%
Expected lives (2)		4-5 years			2-5 years

(1) We have not paid cash dividends on our common stock since 1981, and currently do not have plans to pay or declare cash dividends. Consequently, we used an expected dividend rate of zero for the valuations.

(2) Estimated based on our historical experience. Volatility was based on historical experience over a period equivalent to the expected life in years.

(3) Based on the U.S. Treasury constant maturity interest rate with a term consistent with the expected life of the options granted.

Summary of Stock Option Activity under Stock Options

A summary of the status of all our common stock options as of December 31, 2014 and 2013, and changes during the periods then ended is presented below.

	Year ended December 31, 2014							Year ended December 31, 2013
	Shares			Weighted  Average  Exercise  Price		Aggregate  Intrinsic  Values		Shares			Weighted  Average  Exercise  Price		Aggregate  Intrinsic  Values
Outstanding at beginning of period		1,372,000		$	0.50	$			317,000		$	1.85
Granted		362,500			0.39				2,055,000			0.29
Forfeited		(30,500	)		2.03				(1,000,000	)		0.50
Exercised		-							-
Expired or terminated		(11,500	)		2.87				-
Outstanding at end of year		1,692,500		$	0.44	$	80,000		1,372,000		$	0.50	$	240,750
Vested at end of year		844,500		$	0.70	$	32,000		572,000		$	1.10	$	48,750
Nonvested at end of year		848,000		$	0.18	$	48,000		800,000		$	0.08	$	192,000
Weighted average fair value per share of options issued during the year				$	0.26						$	0.21

2011 Option Plan [Member]

Schedule of Stock Option Plan

The following information relates to the 2011 Option Plan:

	December 31, 2014		December 31, 2013
Common shares reserved for issuance on exercise of options		1,517,500		1,165,000
Shares available for future option grants		482,500		335,000

1997 Employee Stock Option Plan [Member]

Schedule of Stock Option Plan

The following information relates to the 1997 Option Plan:

	December 31, 2014		December 31, 2013
Common shares reserved for issuance on exercise of options		55,000		87,000
Shares available for future option grants		-		-

2000 Directors' Stock Option Plan [Member]

Schedule of Stock Option Plan

The following information relates to the 2000 Directors' Stock Option Plan:

	December 31,  2014		December 31,  2013
Common shares reserved for issuance on exercise of options		120,000		120,000
Shares available for future option grants		-		-